11/11/2011 @ 11:40AM

Caterpillar To Open New North American Facility

Caterpillar
said it has decided to open a new manufacturing facility in North America that will employ 1,000 people.

The facility will produce small track-type tractors and mini hydraulic excavators.

Caterpillar
said it made the decision in order to move production closer to the majority of customers who use the products. It is shifting production from Japan to North America, because of a large customer base for the products in North America and Europe.

The company said it plans to export partially assembled mini excavator base units to a facility in Europe, where final assembly will take place, improving delivery times for European customers.

The plant in Sagami, Japan that previously produced the machine will continue to serve a key strategic role as a high-tech component facility.

Caterpillar said it is still working on determining a location for the new plant, and it hopes to make a decision and begin construction in the first half of 2012.

Caterpillar announced yesterday afternoon that it would buy out Chinese mining equipment producer ERA Mining Machinery, confirming reports from earlier in the day.

Competitor
Joy Global
has also made recent investments in China, taking a 41% stake in a mining equipment maker there.